Registry
Module Specifications
Archived Version 2018 - 2019
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Description This module aims to build students' ability to prepare and interpret accounting information with the degree of understanding that they need for a professional actuarial career. The teaching methodology is based on lectures and interactive problem sessions, which train students to 1. Prepare simple financial statements for sole traders. 2. Prepare statements of comprehensive income, statements of financial position, statements of changes in equity and statement of cash flows, for companies. 3. Analyse, understand, and interpret financial statements using ratio analysis. 4. Describe and explain the regulatory environment for company accounting. | |||||||||||||||||||||||||||||||||||||
Learning Outcomes 1. Discuss the current regulatory environment for corporate reporting including new developments. 2. Appraise and interpret the content of the Annual Report. 3. Prepare statements of comprehensive income, statement of financial position and statements of changes in equity for single companies under IAS1. 4. Describe how cash flow differs from profits and prepare statements of cash flow under IAS7 for companies. 5. Apply IFRS and IAS (e.g., IAS1, 2,7, 16, 36 and 18) to a variety of specialised business transactions. 6. Perform financial analysis of companies using ratios and cash flow information. 7. Explain the concept of a group and perform simple calculations of consolidation. | |||||||||||||||||||||||||||||||||||||
All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
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Indicative Content and
Learning Activities Introduction to AccountingDefinition of accounting, output of accounting - Primary Statements, Users of accounts, Financial Accounting v Management Accounting, alternatives to traditional financial reporting, qualitative features of financial accounting information. Purpose of forecasts and budgets (including relevant examples).Accounting Concepts and ConventionsEntity, going concern, prudence, accruals/matching, consistency, money measurement, historic cost, stable monetary unit, realisation, materiality, objectivity. Developments on the conceptual framework issue.Recording Business TransactionsAccounting equation and the balance sheet, accounting equation and the profit and loss account, double entry system for assets, liabilities and capital, profit and reserves. The Trial Balance.Preparation of accounts for sole tradersSimple adjustments such as accruals and prepayments, depreciation, bad debts; capital and revenue expenditure.Statement of Financial Position for CompaniesCharacteristics of assets, capital, double entry rules, categories of assets and valuation including revaluation of non-current assets, categories of liabilities, types of share capital & types of reserves, preparation of statement of financial position for publication. Statement of Changes in Equity. Shortcomings of historical cost accounting. Interpretation of financial statements of a plc using annual reports and recognition of limitations of this interpretation.Statement of Comprehensive Income for CompaniesRecognition of revenue and expenses, accruals and prepayments, capital and revenue expenditure, depreciation, format of Comprehensive Income statement; flow of information, double entry rules, preparation of Statement of Comprehensive Income and of accounts for publication for plc companies.Statement of Cash FlowsConcept of cash flow, distinction between profits and cash flow, preparation of statement of cash flows under IAS 7. Interpretation of statement of cash flows, using written analysis.Interpretation of AccountsRole of ratio analysis, computation of profitability, liquidity, efficiency, gearing, and investment ratios and interpretation of same by preparation of written analytical reports for plc companies. Link between Cash flow and Ratios and Working Capital Management. Evaluation of working capital management policies, methods for financing working capital, Limitations of ratio analysis in the interpretation of company accounts. Dividend sustainability.Group AccountsConcept of group and preparation of a simple group (consolidated) Statement of Financial Position. Concept of subsidiary and associate companies. Goodwill on consolidation. Review of Annual Report of Insurance Company.The Annual ReportThe role and content of the annual report. The role of directors and auditors. Review of an audit opinion. Creative accounting. Solutions to creative accounting. For example: ethics, corporate governance, whistleblowing. | |||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources None | |||||||||||||||||||||||||||||||||||||
Programme or List of Programmes |
ACM | BSc in Actuarial Mathematics |
CAFM | Common Entry, Actuarial, Financial Maths |
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- See the module specification for AC316 in 2018 - 2019
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- See the module specification for AC316 in 2021 - 2022
- See the module specification for AC316 in 2022 - 2023
- See the module specification for AC316 in 2023 - 2024
- See the module specification for the current year